Stelco Layoffs 2026: What Hamilton Steelworkers Need to Know
Quick answer: Stelco layoffs announced this week could affect up to 500 workers at Hamilton Works and Lake Erie Works in Ontario, with the wind-down starting October 9, 2026. No end date has been given. Affected workers should check their collective agreement, learn Ontario's temporary layoff limits and apply for Employment Insurance promptly.
Key takeaways
Stelco is indefinitely idling its cold-rolled and coated operations at Hamilton Works, and up to 500 jobs across Hamilton and Nanticoke could be affected.
United Steelworkers Local 1005 expects about 350 Hamilton workers to be laid off, while only about 40 to 45 openings were reported at Lake Erie Works.
Under Ontario's Employment Standards Act, a layoff that runs longer than the legal limits for a temporary layoff counts as a termination of employment.
Laid-off workers who wait more than four weeks after their last day of work to apply for Employment Insurance may lose benefits.
Last updated: October 3, 2026
The Stelco layoffs announced this week have left hundreds of workers in Hamilton and Nanticoke, Ontario, facing an uncertain future. Stelco Holdings Inc. says up to 500 workers at its Hamilton Works and Lake Erie Works sites could be affected as it indefinitely idles cold-rolled and coated steel lines, and the wind-down is set to begin on October 9. This guide sets out what has been confirmed, who is affected and the worker protections that apply in Ontario.
What did Stelco announce?
Stelco is idling its cold-rolled and coated operations at Hamilton Works with no end date, and the company says up to 500 employees could be laid off. According to a company memo reported by CBC News, the wind-down starts on October 9, 2026.
In that memo, the company points to United States tariffs. It says sales demand for its galvanized and cold-rolled steel dropped nearly 25 per cent in its traditional markets during Q2 2026, measured against its average quarter in 2024. Frederic Fafard, Stelco's vice-president of sales, called the move "an unfortunate but necessary action," as quoted by Canadian HR Reporter.
Stelco has been owned by Ohio-based Cleveland-Cliffs Inc. since November 2024. The parent company told CBC News that its total steel output will not fall because production is being consolidated at Lake Erie Works in Nanticoke.
How many workers are affected by the Stelco layoffs?
Up to 500 jobs are at risk in total, with the union expecting roughly 350 of them at the Hamilton plant. The rest of the potential layoffs involve the Lake Erie Works site in Nanticoke.
Employer: Stelco Holdings Inc. (owned by Cleveland-Cliffs Inc.)
Sites: Hamilton Works (Hamilton) and Lake Erie Works (Nanticoke), Ontario
Operations idled: Cold-rolled and coated lines at Hamilton Works
Jobs affected: Up to 500 (company and union estimate)
Expected Hamilton layoffs: About 350 (United Steelworkers Local 1005 estimate)
Wind-down start: October 9, 2026
End date: Not stated; described as indefinite
Openings at Lake Erie Works: About 40 to 45, according to the union
Jillian Watt, whose husband has worked at Stelco's Hamilton plant for 21 years, told CBC Hamilton that individual workers had not yet been told whether they will be laid off. Ron Wells, president of United Steelworkers (USW) Local 1005, said members are asking how long the layoffs will last and whether they should start looking for other work. "We're disgusted," he said of the decision.
Will laid-off Hamilton workers get jobs at Lake Erie Works?
Some may, but the number of openings reported so far is far smaller than the number of expected layoffs. Cleveland-Cliffs says Hamilton staff will be offered positions in Nanticoke and expects many of the affected employees to be absorbed there.
The union disputes that view. Wells said USW was told of only about 40 to 45 openings in Nanticoke, well short of the roughly 350 Hamilton layoffs he expects. Watt told CBC she is worried whether her husband's experience will be enough if layoffs are decided by seniority.
Is the federal government stepping in?
Ottawa says Cleveland-Cliffs has employment obligations, but Prime Minister Mark Carney did not directly say whether legal action is being considered. A condition of Ottawa's approval of the 2024 takeover was that Cleveland-Cliffs keep its unionized headcount at no less than the existing level for five years, Canadian HR Reporter reports, citing a ministerial statement from that October.
Carney said the government intends to use all its powers to pursue those obligations. Industry Minister Mélanie Joly said Ottawa had offered Stelco financial support and expressed strong disappointment that the company turned those proposals down. Hamilton Mayor Andrea Horwath said she has asked city staff to look over the commitments made as part of the company's restructuring.
What are your rights during a temporary layoff in Ontario?
Ontario's Employment Standards Act, 2000 (ESA) allows a temporary layoff only for a limited time; beyond that limit, the layoff counts as a termination. The ESA does not require an employer to give written notice or a reason for a temporary layoff, but a collective agreement or employment contract may.
The Ontario government's ESA guide sets these main limits:
Standard limit: no more than 13 weeks of layoff in any 20 consecutive weeks.
Longer limit: under 35 weeks of layoff in any 52 consecutive weeks, if certain conditions apply, such as the employer continuing benefit plan payments or the worker receiving supplementary unemployment benefits.
Unionized workers: 35 weeks or more in 52 consecutive weeks where the employer recalls a unionized employee within the time agreed between the union and the employer.
Extended layoff: since November 27, 2025, a written agreement approved by the Director of Employment Standards can allow a layoff of under 52 weeks in any 78 consecutive weeks.
The guide also notes that the absence of a recall date does not on its own mean a layoff is permanent. A "week of layoff" is one in which you earn less than half of your usual weekly pay.
What happens if the layoff becomes permanent?
If a layoff runs past the legal limits, Ontario treats it as a termination, and the employee is generally owed termination pay. When 50 or more employees at one establishment are terminated within four weeks, special mass termination rules apply.
Notice is based on headcount: 8 weeks for 50 to 199 employees, 12 weeks for 200 to 499 and 16 weeks for 500 or more.
Form 1 must be filed: the employer must send Form 1 to the Director of Employment Standards, post it at the workplace and give each affected worker a copy.
Career supports sheet: workers must receive the Employment Ontario Career Supports information sheet on the first day of the notice period.
Job seeking leave: workers given mass termination notice can take up to 3 days of unpaid, job-protected leave to look for work.
Recall rights choice: a worker with recall rights who is owed termination pay because of a layoff of 35 weeks or more can keep those rights, or give them up to receive termination pay (and severance pay, if entitled).
How do you apply for EI after the Stelco layoffs?
Apply for Employment Insurance (EI) regular benefits online as soon as you stop working, because the Government of Canada warns that applying more than 4 weeks after your last day of work may cost you benefits. You will need your Record of Employment (ROE) from each employer.
Most people receive 55% of their average insurable weekly earnings.
The 2026 maximum insurable earnings are $68,900 a year, so the most you can receive is $729 a week.
A new claim starts with a 1-week unpaid waiting period.
What this means for you
If you work at Hamilton Works or Lake Erie Works, the next few weeks matter. Steps to take now:
Ask your USW local for your seniority position, recall rights and any supplementary unemployment benefit terms in your collective agreement.
Track every week of layoff, since the ESA limits are counted in weeks.
Apply for EI right after your last shift and keep a copy of your ROE.
If a Lake Erie Works offer comes, get the terms in writing before you decide.
For questions about your ESA rights, call the Employment Standards Information Centre at 1-800-531-5551.
The Stelco layoffs follow other tariff-linked cuts in Ontario's steel sector, according to Global News, which points to Algoma Steel's plans to cut more than 1,000 jobs in Sault Ste. Marie and to ArcelorMittal shutting its wire-drawing mill in Hamilton. If you are job hunting, see our guides Why Job Applications Get Rejected (And How to Fix Them) and Minimum Wage Canada by Province 2026: Full Table.
Common mistakes laid-off workers make
During the Stelco layoffs, one costly mistake is waiting to apply for EI, since applying more than 4 weeks after your last day of work may cost you benefits. Others include:
Assuming a layoff with no recall date is automatically permanent, or automatically temporary.
Resigning before checking termination, severance and recall rights.
Giving up recall rights without understanding the payout you would receive in exchange.
Frequently asked questions
How many workers are affected by the Stelco layoffs?
Up to 500 workers could be affected across Hamilton Works and Lake Erie Works, according to both Stelco and the union. United Steelworkers Local 1005 expects about 350 of those layoffs at the Hamilton plant.
When do the Stelco layoffs start?
The wind-down of the cold-rolled and coated operations at Hamilton Works begins on October 9, 2026, according to a company memo reported by CBC News. Stelco has not given an end date for the idle.
Why is Stelco laying off workers?
Stelco blames U.S. tariffs and ongoing trade disruption. Its memo says demand for its cold-rolled and galvanized steel dropped nearly 25 per cent in Q2 2026 versus its 2024 quarterly average.
Can laid-off Stelco workers move to Lake Erie Works?
Cleveland-Cliffs says jobs at Lake Erie Works will be offered to affected Hamilton employees. However, the union says it was told of only about 40 to 45 openings there, far fewer than the expected layoffs.
How long can a temporary layoff last in Ontario?
Usually no more than 13 weeks in any 20 consecutive weeks under the Employment Standards Act. It can last longer in specific cases, such as when benefits continue, when a unionized worker is recalled within the time in a union agreement, or under an approved extended layoff agreement.
How much EI can a laid-off worker get in 2026?
Most people receive 55% of their average insurable weekly earnings, up to a maximum of $729 a week in 2026. Apply within 4 weeks of your last day of work to avoid losing benefits.
Sources
CBC News: 'It's devastating': Hundreds of Stelco workers face uncertain future
Canadian HR Reporter: Stelco laying off 500 workers as U.S. tariffs idle Hamilton lines
Global News: Stelco layoffs highlight domino effect of U.S. tariffs
Government of Ontario: Your guide to the Employment Standards Act – Termination of employment
Government of Canada: EI regular benefits – How much you could receive
This article was compiled by Jobsiz from the sources listed above, with AI-assisted writing and automated fact-checking. Published October 3, 2026. We update stories when new verified information becomes available.